This paper analyzes the legal foundations of central bank digital currency (CBDC) under central bank and monetary law. Absent strong legal foundations, the issuance of CBDC poses legal, financial and reputational risks for central banks. While the appropriate design of the legal framework will up to a degree depend on the design features of the CBDC, some general conclusions can be made. First, most central bank laws do not currently authorize the issuance of CBDC to the general public. Second, from a monetary law perspective, it is not evident that “currency” status can be attributed to CBDC. While the central bank law issue can be solved through rather straithforward law reform, the monetary law issue poses fundmental legal policy challenges.

We study the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash, CBDC and bank deposits according to their preferences over anonymity and security; and where network effects make the convenience of payment instruments dependent on the number of their users. CBDC can be designed with attributes similar to cash or deposits, and can be interest-bearing: a CBDC that closely competes with deposits depresses bank credit and output, while a cash-like CBDC may lead to the disappearance of cash. Then, the optimal CBDC design trades off bank intermediation against the social value of maintaining diverse payment instruments. When network effects matter, an interest-bearing CBDC alleviates the central bank's tradeoff.

The Committee on Currency Features for the Visually Impaired evaluated features that could be incorporated in the production of U.S. banknotes that would enable blind and visually disabled people to more easily determine the denomination of a banknote. This volume describes several features and the assessment methodology used to determine which features could be recommended for inclusion in the short term, which could be recommended for research and possible inclusion in future currency redesigns, and which features were impractical for use in U.S. banknotes. Also included is an outline of the various types of visual disabilities that impair an individual's ability to denominate banknotes. Recommended features and areas of research are described in detail. Banknote and other security document producers, and people interested in addressing needs and opportunities for visually disabled people in the United States will find this book useful.

Traditionally, counterfeit deterrent features restricted counterfeiting to only the dedicated craftsman. With the advent of highly sophisticated reprographic systems, this is no longer true. Redesign of U.S. banknotes is necessary in order to incorporate additional features aimed at discouraging counterfeiting using advanced copiers-scanners-printers. This volume evaluates a large number of such features while recommending a comprehensive national strategy for anticipating and responding to counterfeiting threats.

The paper reviews recent theoretical and empirical developments in the analysis of informal currency markets in developing countries. The basic characteristics of these markets are highlighted, and alternative analytical models to explain them are discussed. The implications for exchange rate policy —including imposition of foreign exchange restrictions, devaluation, and unification of exchange markets— in countries with a sizable parallel market are also examined.

The Congressional Record is the official record of the proceedings and debates of the United States Congress. It is published daily when Congress is in session. The Congressional Record began publication in 1873. Debates for sessions prior to 1873 are recorded in The Debates and Proceedings in the Congress of the United States (1789-1824), the Register of Debates in Congress (1824-1837), and the Congressional Globe (1833-1873)